Builders FirstSource (NYSE:BLDR) versus Carlisle Companies (NYSE:CSL) Financial Contrast

Builders FirstSource (NYSE:BLDR) and Carlisle Companies (NYSE:CSL) are both industrials companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, risk, profitability, dividends and earnings.

Valuation & Earnings

This table compares Builders FirstSource and Carlisle Companies”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Builders FirstSource	$15.19 billion	0.43	$435.20 million	$0.91	66.50
Carlisle Companies	$5.02 billion	2.65	$740.70 million	$17.43	19.21

Carlisle Companies has lower revenue, but higher earnings than Builders FirstSource. Carlisle Companies is trading at a lower price-to-earnings ratio than Builders FirstSource, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

95.5% of Builders FirstSource shares are owned by institutional investors. Comparatively, 89.5% of Carlisle Companies shares are owned by institutional investors. 2.7% of Builders FirstSource shares are owned by company insiders. Comparatively, 1.3% of Carlisle Companies shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and price targets for Builders FirstSource and Carlisle Companies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Builders FirstSource	3	13	9	0	2.24
Carlisle Companies	0	6	5	0	2.45

Builders FirstSource presently has a consensus target price of $90.26, indicating a potential upside of 49.14%. Carlisle Companies has a consensus target price of $402.43, indicating a potential upside of 20.19%. Given Builders FirstSource’s higher possible upside, analysts clearly believe Builders FirstSource is more favorable than Carlisle Companies.

Profitability

This table compares Builders FirstSource and Carlisle Companies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Builders FirstSource	0.71%	11.73%	4.32%
Carlisle Companies	14.21%	47.58%	13.46%

Volatility & Risk

Builders FirstSource has a beta of 1.41, meaning that its stock price is 41% more volatile than the S&P 500. Comparatively, Carlisle Companies has a beta of 0.84, meaning that its stock price is 16% less volatile than the S&P 500.

About Builders FirstSource

Builders FirstSource, Inc., together with its subsidiaries, manufactures and supplies building materials, manufactured components, and construction services to professional homebuilders, sub-contractors, remodelers, and consumers in the United States. It offers lumber and lumber sheet goods comprising dimensional lumber, plywood, and oriented strand board products that are used in on-site house framing; manufactured products, such as wood floor and roof trusses, floor trusses, wall panels, stairs, and engineered wood products; and windows, and interior and exterior door units, as well as interior trims and custom products comprising intricate mouldings, stair parts, and columns under the Synboard brand name. The company also provides specialty building products and services, including vinyl, composite and wood siding, exterior trims, metal studs, cement, roofing, insulation, wallboards, ceilings, cabinets, and hardware products; turn-key framing, shell construction, design assistance, and professional installation services. In addition, it offers software products, such as drafting, estimating, quoting, and virtual home design services, which provide software solutions to retailers, distributors, manufacturers, and homebuilders. The company was formerly known as BSL Holdings, Inc. and changed its name to Builders FirstSource, Inc. in October 1999. Builders FirstSource, Inc. was incorporated in 1998 and is based in Irving, Texas.

About Carlisle Companies

Carlisle Companies Incorporated operates as a manufacturer and supplier of building envelope products and solutions in the United States, Europe, North America, Asia and the Middle East, Africa, and internationally. It operates through two segments: Carlisle Construction Materials and Carlisle Weatherproofing Technologies. The company produces single-ply roofing products, and warranted roof systems and accessories, including ethylene propylene diene monomer, thermoplastic polyolefin and polyvinyl chloride membrane, polyiso insulation, and engineered metal roofing and wall panel systems for commercial and residential buildings. It also offers building envelope solutions, including high-performance waterproofing and moisture protection products, protective roofing underlayments, fully integrated liquid and sheet applied air/vapor barriers, sealants/primers and flashing systems, roof coatings and mastics, spray polyurethane foam and coating systems, block-molded expanded polystyrene insulation, and engineered products for HVAC applications. It sells its products under the Carlisle SynTec, Versico, WeatherBond, Hunter Panels, Resitrix, and Hertalan brands. Carlisle Companies Incorporated was founded in 1917 and is headquartered in Scottsdale, Arizona.